The Insurance Information Institute (Triple-I) has started public awareness campaigns in Los Angeles, California, and Cook County, Illinois, to address the impacts of legal system abuse. The campaigns use billboards and digital displays in busy areas to promote Triple-I’s updated microsite.
According to the American Tort Reform Foundation (ATRF), California and Illinois are frequently included in its annual list of jurisdictions where legal system abuse is a concern. ATRF identified Los Angeles as leading its latest list because of frequent large verdicts and new theories of product and environmental liability that disadvantage defendants. Cook County was ranked seventh on this list.
A report by Triple-I and Munich Re explains that these practices contribute to higher insurance premiums and other financial burdens nationwide. The report estimates an added $6,664 in annual costs for a family of four in the U.S., with 4.8 million jobs lost across the country. For individuals, this translates to $2,566.70 per year in California and just over $2,000 per year in Illinois. Both states have lost hundreds of thousands of jobs annually due to these trends.
Attorney advertising can mislead the public about litigation outcomes. According to Triple-I’s most recent report on legal system abuse: “Legal service providers spent $2.5 billion on millions of ads in 2024 largely to tout this messaging, which research suggests increases the number of plaintiffs in multidistrict litigation (MDL), or large, complex lawsuits consisting of multiple civil cases in different districts.”
Additional analysis from Triple-I and the Casualty Actuarial Society (CAS) found that excessive litigation led to $231.6 billion to $281.2 billion in increased liability insurance losses from 2015 through 2024—an increase not explained by economic inflation alone. Another Triple-I study showed an estimated $42.8 billion in excess litigation value from motor vehicle tort cases filed between 2014 and 2023 at both federal and state levels.
Triple-I’s efforts follow similar campaigns launched previously in Georgia and Louisiana, where lawmakers enacted broad legal system reforms last year. These reforms include stricter oversight of third-party litigation funding to prevent external investors from influencing court outcomes for profit. While it is too early for these changes to impact insurance premiums significantly, reforms enacted earlier in Florida provide examples of potential market improvements.
“Families and businesses across the country are grappling with rising costs. By distorting loss trends and propelling claims expenses, unnecessary and drawn-out litigation serves only to exacerbate the strain,” stated Triple-I’s release. “Addressing these pressures requires ongoing dialogue between regulators, consumers, industry leaders, and other stakeholders to ensure fairness in the court system while supporting a stable insurance environment that keeps coverage accessible.”
The Insurance Information Institute supports stakeholders such as consumers, media representatives, and policymakers by offering resources in English and Spanish through its official website. The organization also provides data-driven insights on risk management for various audiences including professionals and policymakers (source). Since November 2020, Triple-I has been affiliated with The Institutes (source).
Triple-I represents more than 50 insurance company members ranging from regional carriers to global firms (source). It is recognized as a leading online source for insurance information via its website, blog, and social media channels (source). The organization also hosts events and partnerships designed to improve understanding of insurance topics (source).
